UK Retail Sales See Increase of 3.9% Despite Lowest Growth in Food Sales

However, the growth in retail sales in May was the slowest it has been in the past six months due to rising food prices. Despite this, an average growth rate of 3.4% was observed in retail sales over the past 12 months.

The sales of food items rose by 9.6%, though it was calculated to be 9.8% on average over the last three months.

Helen Dickinson, the CEO of BRC, expressed her views on the data, stating that the official holidays in May were not enough to boost consumer spending. She added that "The growth in consumer spending has fallen to its lowest level in the past six months. While the sales of food items saw an increase during the weekend of King Charles III's coronation, this trend was not maintained for the rest of May. With the cost of living continuing to put pressure on households, we are seeing a decline in optional spending as well."

While the warmer weather has led to an increase in sales of summer clothing and gardening equipment during the month, the decline in consumer confidence and household incomes is likely to impact future sales growth. Paul Martin, the UK Head of Retail at KPMG, stated that May recorded a lower growth rate in consumer spending than April's 5%.

Moreover, online sales saw a decline of 3% during the period. Martin cited the growing trend of consumers bargaining in physical stores as a possible reason behind the decline.

Given the persistent inflation and the expected increase in interest rates, Martin did not expect the summer months to be very strong for the retail sector.